Peter Hansen
12-16-2008, 09:48 AM
Lucadia National ( LUK ) ....It maybe time to BUY. Yes LUK has taken a 40% + HIT since July 08 ...it aquired an Australian iron ore mine, Fortescue FMG on the Austrailian Securities Exchange . FMG took 70% hit when most of the commodity stocks got hit . RIO, BHP and Vale of brazil.
Remember CHINA is not going away , and with with a vast infrastructure...it will once again be a buyer of iron ore.
I feel the stock is one to buy NOW for your IRA and watch it grow over the years !
Well WHY you may ask ?.....Here are several reasons.
1. The company is run by 2 well respected venture kings Ian Cummings and Joe Steinberg. These guys buy distressed companies at bargain pices , and then guide them to greatness!
2. Every Dollar placed into LUK in 1978 would have been worth $900...up until 2007.....of course lately because of the commodity collapse in 2008 the stock declined.
3. According to VECTOR VEST the stock is UNDERVALUED at its current 12/15/08 closing price of $19.30.....Its true value is $44.71 per share !
4. LUK has a P/E of 5.35
5. EY Earnings Yield of 18.70%
6. LUK pays annual dividend of .25 per share
7. Luk has an annual sales growth of 22% per year
8. LUK has an Earnings Growth Rate GRT of 32% per year .
9. LUK's stock price has increased at compounded growth rate of 33.9% from 1978-2007.
10 The owners Ian Cummings and Joe Steinberg own 25% of the stock ....now that is a vote of confidence in the company
Well there you have it .....should you buy now? ....only YOU can be the judge of that ....but over the long haul in a IRA .....better yet in a ROTH IRA , I think LUK will beat the pants off many other stocks!
Remember CHINA is not going away , and with with a vast infrastructure...it will once again be a buyer of iron ore.
I feel the stock is one to buy NOW for your IRA and watch it grow over the years !
Well WHY you may ask ?.....Here are several reasons.
1. The company is run by 2 well respected venture kings Ian Cummings and Joe Steinberg. These guys buy distressed companies at bargain pices , and then guide them to greatness!
2. Every Dollar placed into LUK in 1978 would have been worth $900...up until 2007.....of course lately because of the commodity collapse in 2008 the stock declined.
3. According to VECTOR VEST the stock is UNDERVALUED at its current 12/15/08 closing price of $19.30.....Its true value is $44.71 per share !
4. LUK has a P/E of 5.35
5. EY Earnings Yield of 18.70%
6. LUK pays annual dividend of .25 per share
7. Luk has an annual sales growth of 22% per year
8. LUK has an Earnings Growth Rate GRT of 32% per year .
9. LUK's stock price has increased at compounded growth rate of 33.9% from 1978-2007.
10 The owners Ian Cummings and Joe Steinberg own 25% of the stock ....now that is a vote of confidence in the company
Well there you have it .....should you buy now? ....only YOU can be the judge of that ....but over the long haul in a IRA .....better yet in a ROTH IRA , I think LUK will beat the pants off many other stocks!